(MENAFN- ProactiveInvestors) Canadian shares advanced for a second day as investors welcomed remarks from Chair Janet Yellen on the U.S. central bank’s monetary policy direction offsetting disappointing earnings from Bank of Montreal.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.2 percent to 15228.00 at 12:30 p.m. in Toronto. Five shares advanced for every three stocks that retreated. Seven out of 10 share group gained.
Yellen began testifying to U.S. lawmakers about plans for an eventual interest rate increase saying the Fed was preparing to consider rate hikes "on a meeting by meeting basis."
Sentiment in Canada is often influenced by news out of the United States Canada's largest trading partner.
Bank of Montreal (TSE:BMO) fell 1.7 percent to C$76.06 after Canada’s fourth-largest bank said profit fell in its fiscal first quarter disappointing analysts due to the impact of declining long-term interest rates on its insurance unit and lower investment and corporate banking revenues.
Financials the index's most heavily weighted sector slipped 0.1 percent. () which has the heaviest weighting in the index was little changed at C$75.13. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value sank 0.4 percent to C$53.36.
The energy sector the main index's second most heavily weighted group rose 0.3 percent as Brent crude oil reversed early losses to trade back above $59 a barrel.
Energy (TSE:SU) Canada's largest oil sands producer slid 0.3 percent to C$38.56. Limited () Canada’s largest independent energy company jumped 1.1 percent to C$37.79
() jumped 5.2 percent to $3059 after saying fourth-quarter cash flow totaled C$59 million or C$0.44 per share while earnings came in at C$50.7 million or C$0.38.
Brent futures for April were up $1 at $59.90 a barrel by 11:05 a.m. while U.S. crude was up 42 cents at $49.87. Oil rose as Libya's largest oilfield stopped production and as traders awaited U.S. oil inventory data to see whether it would show another large increase.
The materials sub-index which includes mining shares rose 0.9 percent even as gold slid below $1200 an ounce today. (TSE:G) Canada’s largest gold miner by market value fell 0.8 percent to C$26.88. (TSE:ABX) the second-largest slumped 1 percent to C$15.83.
Agrium () rose 3.9 percent to C$143.54 as Canadian fertilizer and farm retail dealer posted a better-than-expected profit in the fourth quarter buoyed by higher prices for most grains and oilseeds and forecast this year’s profit to be in line with expectations.
Spot gold was down 0.4 percent at $1196.45 an ounce by 9:49 a.m. while U.S. gold futures for April delivery were down $4.20 an ounce at $1196.60. Gold fell as news that the Eurogroup had approved Greece's reform plan boosted appetite for assets viewed as higher-risk such as equities.
(TSE:CP) which operates in six proves and 13 U.S. states rose less than 0.1 percent to $237.12. The company said it has renewed its share buyback program for the next year allowing it to repurchase up to 9.14 million shares or 6 percent of its public float. Desjardins said in a note it considers the announcement as a positive and said the amount is “slightly more aggressive” than the 6.8 million it expected.
The junior () was flat at 691.99 at 12:33 p.m. in Toronto.
In the U.S. market shares climbed to history highs as Chair Janet Yellen testified that inflation and wage growth remain too low for the central bank to raise rates at its next meeting. The S&P 500 (INDEXSP:.INX) rose 0.2 percent to 2114. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 0.5 percent to 18198 and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) inched up 0.1 percent to 4964. Most followed shares included Agrium Macy’s Dillard’s Scripts First Solar and .
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